9911796707
TMI Blog2024 (11) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... the accommodation entries were being routed through transaction in shares of listed companies, which were regularly traded on the stock exchange. The report indicates that as many as twelve listed companies were identified, whose shares were used for structuring the accommodation entries. The report also included Annexure A, setting out the details of the beneficiaries and the names of the listed companies whose shares had been transferred in Demat Accounts of the beneficiaries. Annexure A to the said report is not produced but the extract, which pertains to the petitioner, has been filed along with an additional affidavit filed on behalf of the Revenue, which clearly indicates that the transaction in respect of 4800 (four thousand eight hundred) number of shares of Aurobindo, through Mridul Securities, was identified as one of the transactions for structuring the accommodation entries. The petitioner in her response to the notice u/s 148A (b) of the Act had denied the allegations. However, it is material to note that she did not provide any details of the alleged transaction of purchase of 4800 (four thousand eight hundred) shares of Aurobindo. The petition is also bereft of any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by it were bogus and fabricated. The shares of the company were purchased/exchanged in the name of one Mr. Rakesh Sharma and were subsequently transferred by off-market transactions to Tradenext. Mr. Rakesh Sharma had filed an FIR stating that his name had been misused and he had never opened any Demat Account. It was also found that some of the beneficiaries had admitted that they had no knowledge of the share trading and they had arranged for exempt income by payment of 2-3% commission. 5. The information, which was available with the AO, as highlighted in the notice issued under Section 148A (b) of the Act, is reproduced below: In this case information was received through Insight portal in High Risk category that- 1. A search was conducted by the inv Wing, Rohtak on Tradenext Securities Ltd (Lifeline Securities Ltd) and Kundu Group of Rohtak. It was found that family members of Kundu group had taken accommodation entries in form of Exempt LTCG u/s 10 (38) of the IT Act, 1961. 2. It was found that the members of Kundu group/beneficiaries had in their possession contract notes for purchase of shares which dated back to F.Y. 2009-10 but on further investigation no such transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties P Ltd. 6. It is the petitioner s case that the said information does not relate to her and, therefore, was not suggestive of her income escaping during the relevant AY. The petitioner filed a response to the notice issued under Section 148A (b) of the Act, in effect, stating that she had no relation with Tradenext and/or Kundu Group. The petitioner also stated that she had not claimed income exemption under Section 10 (38) of the Act in respect of the shares that were purchased from Tradenext or Mridul Securities Pvt. Ltd. (hereafter Mridul Securities) or any other broker. The petitioner also stated that she had not purchased any shares on the basis of a contract note, which dated back to FY 2009-10 and, therefore, the allegations did not have any relevance in the case of assessee. 7. Insofar as dealing with Mridul Securities is concerned, the petitioner accepted that she had a trading account with Mridul Securities for many years and had been regularly trading in share market through its account. The petitioner also acknowledged that she had purchased 4800 (four thousand eight hundred) shares of a company known as Aurobindo Pharma Ltd. (hereafter Aurobindo) in the normal cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he course of the proceedings. 14. It is noted that the said report is fairly comprehensive and has sought to deconstruct the manner in which the accommodation entries were being routed through transaction in shares of listed companies, which were regularly traded on the stock exchange. The report also indicated that during the search conducted on Tradenext (then known as Lifeline Securities Ltd.) as well as its holding company (Karnam Securities Ltd.), it was found that the said entities were actively involved in providing accommodation entries through transactions in listed shares, which would result in bogus long term capital gains. The report indicates that as many as twelve listed companies were identified, whose shares were used for structuring the accommodation entries. The report also included Annexure A, setting out the details of the beneficiaries and the names of the listed companies whose shares had been transferred in Demat Accounts of the beneficiaries. Annexure A to the said report is not produced but the extract, which pertains to the petitioner, has been filed along with an additional affidavit filed on behalf of the Revenue, which clearly indicates that the transac ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
